A new tax incentive will be introduced for IT specialists, APA reports.
This is reflected in the proposed amendment to the Tax Code discussed today at a meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship.
Under the current legislation, from January 1, 2026, for a period of seven years, income tax on the monthly employment income of specialists working in system integration, software development and software enhancement for taxpayers operating outside technology parks as residents of technology parks is levied at 5% of their monthly income.
According to the draft, from July 1, 2026, for a period of 20 years, no income tax will be levied on the monthly employment income of these specialists, and the tax rate will be reduced to 0%.
Under the proposed new Article 101.8 of the Tax Code, highly qualified migrants working in the fields of digital technologies, artificial intelligence technologies, cybersecurity and innovation (excluding residents of technology parks), as well as individuals who have had no tax obligations in Azerbaijan or have been non-residents of Azerbaijan for the last 24 consecutive months or longer, Azerbaijani citizens returning to the country to work in these fields, and specialists directly engaged in scientific research, design and survey, and experimental development activities at enterprises, will be subject to a 0% income tax rate on their monthly employment income for a period of 20 years starting from July 1, 2026.
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